What is the coverage limit for landlord furnishings under a homeowners policy?

Under a homeowners policy, particularly in HO-3 and specific forms of HO-4, landlord furnishings are indeed covered, but with certain limitations. The coverage limit for landlord furnishings is typically set at $2,500, which is the basis for one part of the correct answer.

Additionally, there is often a specific exclusion pertaining to theft. This means that while the furnishings are covered for certain perils, the policy may not extend to cover losses resulting from theft. Therefore, understanding this aspect is crucial for both landlords and brokers, as it affects the risk management strategy associated with insuring rental properties.

Thus, combining these two key points—coverage of up to $2,500 and the exclusion of theft—highlights why the correct answer encompasses both components. It is essential for those in the insurance field to accurately communicate these limitations to clients.